Tax Law - Foreign Source Income - Centrelink
Date: May 15, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Over the years the ATO has turned its attention to a number of taxation exploitation schemes. During the course of the current calendar year one of their major points of focus is Australian residents with undeclared foreign source income e.g. foreign investment income or income earned from inherited assets.
Tax Law - Tax Evasion and Money Laundering - Queensland Arrest
Date: May 15, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Sometimes the wider community thinks the Australian Taxation Office has gone soft on tax evasion and money laundering which could not be further from the truth. On 26 April 2012 the Australian Federal Police and the ATO published a joint media release indicating that a 67 year old man had been arrested and more than $40M of assets had been restrained under the Commonwealth Proceeds of Crime legislation.
Tax Law - Property Investors - New Initiative
Date: April 26, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
It should come as no surprise that the ATO is targeting 1.5 million property investors and more particularly those who are claiming deductions and interest expenses for personal liabilities accommodated under various loan arrangements.
Tax Law - CGT - Application of CGT for Non-Residents and Temporary Residents
Date: March 27, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Australian residents are able to enjoy benefits afforded to them solely because they are registered Commonwealth citizens. All applications for residency are meticulously assessed by the ATO utilising a variety of tests to determine whether an entity(ies) can be treated as a resident for taxation purposes.
Tax Law - CGT - Application of CGT for Non-Residents
Date: March 27, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Australian residents are able to enjoy benefits afforded to them solely because they are registered Commonwealth citizens. All applications for residency are meticulously assessed by the ATO utilising a variety of tests to determine whether an entity(ies) can be treated as a resident for taxation purposes.
Tax Law - Penalties and Interest - Remission of penalties
Date: March 27, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In essence taxpayers with a good compliance history are far more likely to be treated leniently than those otherwise. Wherever a taxpayer has a shortfall amount all the relevant circumstances including their compliance history are considered in deciding whether it is fair and reasonable to remit penalty in whole or in part.
Tax Law - Penalties and Interest - Interest charges
Date: March 27, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
There are two types of interest charges upon which the ATO relies. Firstly the General Interest Charge, and secondly the Shortfall Interest Charge and in this interest environment there is also the concept of the base rate.
Tax Law - Tax Non-Compliance - Penalties
Date: March 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
As we have indicated previously there are three types of penalties : Civil, Criminal and Administrative. Under the administrative penalty regime a taxpayer was liable to a penalty of 75% of the amount of the tax shortfall where the taxpayer fails to lodge a document necessary to establish the basis of the tax-related liability and the ATO is forced to raise a default assessment.
Tax Law - Tax Non-Compliance - Penalties and Interest
Date: March 19, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The one thing which all revenue systems have in common around the world is imposition of penalties and interest where tax non-compliance is detected. Where this occurs in Australia the ATO has to consider whether or not the taxpayer is liable to penalties and/or interest charges.
Tax Law - Capital Gains Tax - CGT Events(Part 1)
Date: February 22, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
CGT events are circumstances that could either give rise to a capital gain or result in a capital loss. It is only after the occurrence of a CGT event that an entity would be liable to pay CGT and be subject to the application of the provisions for that particular event.
Tax Law - Capital Gains Tax - CGT Events(Part 2)
Date: February 22, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
CGT events are circumstances that could either give rise to a capital gain or result in a capital loss. It is only after the occurrence of a CGT event that an entity would be liable to pay CGT and be subject to the application of the provisions for that particular event.
Tax Law - Defending tax debts
Date: February 22, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The problem for taxpayers in dealing with taxation debts has always been Section 177(1) of the ITAA 1936. It says that the production of a Notice of Assessment by the Commissioner shall be conclusive evidence of the making of the assessment, except in proceedings Part IVC of the TAA 1953 on a review or appeal relating to the assessment, that the amount and all the particulars of the assessment are correct.
Tax Law - Tax Evasion - Tax planning
Date: February 22, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
It goes without saying, tax evasion is the biggest threat to the Commonwealth’s largest revenue stream. Suffice to say the ATO continuously revamps and improves its strategies year after year to address the problem. While the number of tax offenders has dwindled since the implementation of new tax system (ANTS) there continues to be a large number of entities who fail to comply with their tax and superannuation obligations.
Tax Law - Value Shifting Essentials (Part 1)
Date: February 21, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Value shifts happen when there is transaction between two parties and the value used for the transaction is not the market value of the asset(s). As a result, the value of an asset from one party is decreased while the value of the other is increased, creating an opportunity to artificially create losses or gains to be used for tax evasion purposes.
Tax Law - Superannuation - Trust Deeds - Excess Contributions Tax
Date: February 21, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Excess contributions tax has become a hot potato over the last few years. As a result the ATO introduced TA2010/2 striking down clauses in self –managed superannuation fund trust deeds designed to circumvent the imposition of excess contributions tax.
Tax Law - Value Shifting Essentials (Part 2)
Date: February 21, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Indirect value shifting happens when two parties under the same ownership engage in a transaction.
Tax Law - Compliance Programme 2011-2012 Fiscal Year(Part 1)
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The collection and recovery of tax debts has proved challenging for the ATO in the last financial year. Declining economic conditions coupled with natural disasters have made tax and superannuation compliance hard for everyone. That said, some taxpayers have resorted to cheating the taxation system but as the year progressed, the ATO was able to address some of these problems.
Tax Law - Tax Havens
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The mere fact that a taxpayer has overseas assets, income and bank accounts is not illegal. Similarly the use of a tax haven for a legitimate business enterprise or other purpose is not illegal provided there is transparency with respect to these overseas dealings and no attempt is made to hide an/or conceal the true nature of what is occurring.
Tax Law - Compliance Programme 2011-2012 Fiscal Year(Part 2)
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The collection and recovery of tax debts has proved challenging for the ATO in the last financial year. Declining economic conditions coupled with natural disasters have made tax and superannuation compliance hard for everyone. That said, some taxpayers have resorted to cheating the taxation system but as the year progressed, the ATO was able to address some of these problems.
Tax Law - Cash Economy
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In November 1996 Michael Carmody, the former Commissioner of Taxation established the Cash Economy Taskforce to address the Commonwealth’s escalating problems regarding businesses that participate in the cash or underground economy. While the ATO has had programmes in the past to address this problem, the Commissioner found it necessary to create a project that would specialise in the matter. The Taskforce aims to refine strategies and continue those that have been successful in mitigating and pursuing participants of the cash economy to rid the Commonwealth of the problem.
Tax Law - Financial Year 2010-2011 - Offences, convictions, recovered amounts and sentencing
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The ATO has become more vigilant and has adopted a far more sophisticated approach to pursue individuals and companies who not comply with their tax-related obligations. The 2010-2011 financial year has lead to a large number of tax-related convictions and superannuation offences.
Tax Law - Common tax evasion schemes through tax havens
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Since 2006 Project Wickenby has tried to address the Commonwealth’s problems with entities who use tax or secrecy havens to avoid or minimize payment of their tax obligations. The first course of action for the project or for any task-force for that matter is to identify the problem and how best to deal with it. There are a number of common scheme arrangements of which the ATO is aware.
Tax Law - Compliance Programme 2011 - 2012 Fiscal Year (Part 3)
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The collection and recovery of tax debts has proved challenging for the ATO in the last financial year. Declining economic conditions coupled with natural disasters have made tax and superannuation compliance hard for everyone. That said, some taxpayers have resorted to cheating the taxation system but as the year progressed, the ATO was able to address some of these problems.
Tax Law - Compliance Programme 2011-2012 Fiscal Year(Part 4)
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The collection and recovery of tax debts has proved challenging for the ATO in the last financial year. Declining economic conditions coupled with natural disasters have made tax and superannuation compliance hard for everyone. That said, some taxpayers have resorted to cheating the taxation system but as the year progressed, the ATO was able to address some of these problems.
Tax Law - Tax Havens - Legal use and exemptions
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In general, tax havens have always had a negative connotation regardless of the country, state or territory in which the person resides. Tax havens are normally thought of as a way to illegally lower or evade tax obligations by hiding money in foreign accounts, hoping that they will not be discovered. Contrary to popular belief, many Australian taxpayers who have dealings with foreign banks in tax havens are acting within the law.
Tax Law -Tax Haven - Tax Information Exchange Agreement
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The OECD (Organisation for Economic Co-Operation and Development) developed Tax Information Exchange Agreement to help different states and countries to obtain relevant information on taxpayers from their respective countries or states. Member states cannot be hindered by bank secrecy laws when obtaining relevant data regarding a taxpayer’s offshore assets and income.
Tax Law - Taxation of Foreign Employment Income
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Australians working overseas may be entitled to exemption from paying Australian tax. Generally a resident will be required to pay tax or other tax-related obligations. This also applies for non-residents whose source of income is from the Commonwealth. A company not incorporated in Australia may nevertheless be regarded as a resident by the ATO and be required to pay taxes if its central control and management is located in Australia.
Tax Law - Project Wickenby - Prosecutions and Amount Recovered (Part 1)
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In 2006 the Australian Government funded Project Wickenby, a cross-agency task force in an effort to fight and prevent the participation in and promotion of abusive international tax schemes through the use of tax or secrecy havens. The government provided a total of $430.9M to fund the project until 2013. While the amount for the project is quite hefty, the “investment” made by way of Australian taxpayer dollars has yielded very promising results.
Tax Law - Project Wickenby - Prosecutions and Amount Recovered (Part 2)
Date: February 20, 2012
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
More than half of the revenue collected by Project Wickenby came from voluntary disclosures. The majority of the remaining amounts ($276M) was collected through prosecutions and court judgments. As of the date of this writing, 62 individuals have been charged with serious offences under Project Wickenby.
Tax Law - Cash Economy - Data Matching - Privacy - Pursuing Tax Offenders
Date: November 24, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The government founded the Australian Taxation Office for one primary reason: to collect taxes and tax-related liabilities. The ATO has the responsibility to ensure that every taxpayer pays the correct amount of tax and excise under the law. That said, the ATO has been given power to pursue individuals and entities who are not complying with their tax-related responsibilities including those who provide false information.
Tax Law - The Cash Economy - Detection
Date: November 24, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The ATO has pursued tax offenders, especially businesses that participate in the cash or underground economy. In 2010, the government has given the ATO an extra $445 million over the next four years in order to crackdown on the cash economy and GST(goods and services tax) compliance and is expected to gain over $3.2 billion in lost revenue over that period.
Tax Law - Defining the Cash Economy
Date: November 24, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The cash economy is often referred to as “black”, “hidden”, or “underground” economy. The essence of the cash economy is when business transactions go unrecorded or unreported to the ATO. Hence, they gain an unfair advantage over other businesses which choose to comply with the requirements of the ATO by deliberately evading their tax-related obligations.
Tax Law - Cash Economy Letters Program - Results
Date: November 24, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Putting a stop to businesses that operate in the cash economy could be as simple as informing them that they are indeed operating illegally. That said, the ATO has carried out a project to reduce the risk induced from businesses participating in underground economy called cash economy letters program.
Tax Law - Cash Economy - Voluntary Disclosure - Remission of Penalties and Charges
Date: November 18, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
A voluntary disclosure can involve an entity informing the ATO about a false or misleading statement they made without being prompted or persuaded to do so. It has inherent advantages, one of which is a reduction in penalties and interest. Voluntary Disclosure is an area which is really misunderstood by most tax lawyers or accountants including the role of a Prudential Auditor. Most professionals go about it the wrong way and rarely achieve a good result.
Tax Law - Cash Economy - Small Business Benchmarks
Date: November 18, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Business benchmarks allow the ATO, as well as corporate entities to compare the performance of a business to another business in the same industry. In doing so, the ATO is able to discern the different turnover ranges for businesses in an industry. That said, discrepancies from business to business will shed light on which businesses are participating in cash economy or not. As of this writing, the ATO has developed benchmarks for more than 100 industries.
Tax Law - Companies - Company Tax Debt and Recovery
Date: November 15, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Company tax debts come into existence in a number of ways. Normally they are the function of the incapacity to pay for any of a number of reasons. In all such cases company directors assume personal liability where nothing is done to address the company’s taxation debt particularly after a director’s penalty notice has been served on them and the 21 day grace period has expired without action.
Tax Law - Debt Recovery - Overpayments
Date: November 15, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In the normal course of things taxpayers account to the tax office for tax monies to satisfy their tax related liabilities. But there are instances in which a person may receive money from the ATO which is in excess of their entitlements to a refund or otherwise. Where this occurs the monies received fall under Section 8AAZN of the TAA 1953 as an administrative overpayment.
Tax Law - Tax Debts - Restrictions on Overseas Travel
Date: November 15, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The Commissioner of Taxation has the power to stop tax debtors from leaving Australia if they have unpaid tax liabilities or have not provided a suitable arrangement to address the debt by placing them on airport watch. This applies to both Australian and foreign nationals who are liable to pay taxes to the ATO unless a deportation order under the Deportation Act 1958 is issued by the Commonwealth.
Tax Law - Debt Recovery - Freezing Assets and Mareva Injunctions
Date: November 15, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The power to freeze assets is an integral part of minimising the risk to the revenue when dealing with assets where a taxpayer attempts to frustrate the tax office recovering the amount of any tax debt. It provides the Commissioner of Taxation with a tool to prevent a debtor from evading tax-related liabilities by dealing with assets in such a way as to frustrate the execution of a judgment. Freezing assets allows the ATO to minimise this risk.
Tax Law - Companies - Late Payments - Directors Penalty Notices (DPN)
Date: November 14, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
As of recent times we have been approached by a number of taxpayers who are experiencing difficulties in meeting their tax and BAS obligations. It is apparent that the ATO has a much lower threshold of tolerance where BAS obligations are not met on time they are now insisting on 50% of the outstanding balance due when a payment arrangement is being negotiated.
Tax Law - Tax Debt - Disputed Debts - Legal Action
Date: November 10, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The ATO believes that the longer a tax debt remains in dispute the harder it is to recover. Disputed debt will normally increase due to the application of penalties and interest as long as the debt remains outstanding or a suitable payment arrangement has not been made by the debtor.
Tax Law - Tax Assessments - Lodging an objection
Date: November 10, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The raising of assessments by the ATO on a person or company are not absolute. There are instances where an assessment made by the ATO is unjustified. That said, taxpayers who are dissatisfied with their tax assessments and other decisions made by ATO have the right to object to some of them to ensure that any action taken to collect taxes and other tax related liabilities are in accordance with legislation.
Tax Law - Tax Assessments - Guidelines for Disputing a Tax Debt
Date: November 10, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
A taxpayer can prepare the objection themselves or have it prepared by an authorised person on their behalf (e.g. tax lawyer or tax agent provided that they have been given written authority (a signed declaration by the taxpayer certifying the details and documents provided are true) to do so.
Tax Law - Failure to Lodge (FTL) Penalty - Exemptions and Remissions of the Failure to Lodge (FTL) Penalty
Date: November 10, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The Commissioner of Taxation may remit an entity's FTL penalty on the grounds that is fair and reasonable to do so if the entity is able to show and prove how a specific event(s) have directly resulted in the taxpayers inability to lodge the documents on time. One matter which the Commissioner will take into consideration when considering to grant a remission is whether the entity has a good compliance history.
Tax Law - Failure to Lodge (FTL) Penalty - Provisions and Factors for the application of the Failure to Lodge (FTL) Penalty
Date: November 10, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Even in the fast-paced world we live in today, every person who derives income, whether through employment or business, from Australia is obliged by the ATO to comply with all of their tax-related requirements on time and in its approved form. Should a taxpayer fail to lodge tax returns, statements, notices or any other document the ATO requires from a taxpayer, then they will most likely be charged with the FTL (failure to lodge) penalty.
Tax Law - Trusts - Resettlement
Date: October 19, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Trusts are being utilised more and more by a wide range of businesses and individuals in our community. Listed unit trusts are being extensively used for either the development and/or acquisition of various property interests. Their popularity continues to grow because accountants promote them as the most effective taxation and asset protection structure currently available in Australia as well as producing substantial fees for them.
Tax Law - Trusts - Misconceptions
Date: October 19, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Tax Law - Tax Debts - The role of the ATO in Recovering Tax Debts
Date: October 17, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Tax revenue is the biggest revenue stream for most countries. It is what funds roads, highways and bridges for trade and travel, it funds schools, hospitals and other institutions in service of the public; it is what finances the majority of the arenas, courts, stadiums or recreational centres; it makes relief efforts possible and delivers relief to those stricken by disaster.
Tax Law - Tax Debts - The value of security
Date: October 17, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Security is the most effective way for an entity to prove to the ATO that the taxpayer has the financial capacity to pay the debt owed. The existence of securities allows the ATO to hold the debtor’s asset to effectively recover the debt.
Tax Law - Tax Debts - Installment Arrangements
Date: October 17, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Unfortunately there are circumstances that arise which impede a taxpayer’s ability to pay taxes. It could be said that in tough times like the present this is one of those times. As the saying goes “the only things that are certain in life are death and taxes”. Where finances are short there are some options which need to be considered.
Tax Law - Debt Recovery
Date: October 12, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Over the last several months there has been a significant increase in the number of taxpayers who have approached us with respect to either actual or threatened debt recovery proceedings from the ATO. In a number of these cases the ATO is threatening to make taxpayers bankrupt or wind up their companies where they have been tax non-compliant over a period of time.
Tax Law - The ATO and Debt Recovery
Date: October 12, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The current economic environment has meant that there are a number of people and/or businesses who are suffering financially. There is much commentary about the existence of a two-speed economy in Australia as we saw with GFC 1 and now with GFC 2. There will be an increase in the number of taxpayers whether company or individual who will be unable to meet their ongoing obligations.
Tax Law - Trusts - Bamfords Case - Part 2
Date: August 15, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
It is well-settled proposition in trust law that trust deeds can define what income is, provided there is an adequate definition of income and the trustee has the discretion to determine what is or is not income allowing the trustee to include in income what might otherwise not be income, such as capital gains in Bamford.
Tax Law - Trusts - Bamfords Case - Part 1
Date: August 08, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Bamford’s case has settled how the definition of “income” in trust deeds is to be construed. Prior to this case there was a raging controversy as to whether the proportional or quantum approach was to be applied.
Tax Law - Foreign Exchange Losses (Forex Losses)
Date: August 05, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In all taxation matters where clients have funds deposited overseas with a foreign bank account there can be issues where there are foreign exchange gains or losses. Many taxpayers who hold offshore funds need to be careful about how they manage these funds as foreign exchange gains and losses may or may not be deductible.
Tax Law - Money Laundering
Date: August 05, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Money laundering is considered by all organs of the government to be hard-core criminal activity which must be rigidly controlled. It is regulated under the Anti-Money Laundering & Counter Terrorism Financing Act 2006 (Cwlth) (AMLF) which became effective in December 2006 and criminalised under others. The Cwlth Government wishes to ensure that businesses and/or individuals do not engage in money laundering.
Debt Recovery - The Essential Guide to Debt Recovery - Part 1
Date: April 18, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
We have all heard about Australia having a two-speed economy since the GFC and according to the pundits apparently the separation between the two areas of business and commercial activity has widened. The resources sector is booming whilst general business including retail is struggling, interest rates are on hold and the current government is struggling to manage the economy.
Debt Recovery - The Essential Guide to Debt Recovery - Part 2
Date: April 18, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
As we have stated earlier we have put up our Cost Agreement and Disclosure Document on our website to ensure the maximum degree of transparency with respect to the terms and conditions of our retainer. It provides clients with the opportunity to acquaint themselves with all the necessary things that they need to know about engagement of a lawyer including privacy, confidentiality and storage of records. You should do the same.
Debt Recovery - The Essential Guide to Debt Recovery - Part 3
Date: April 18, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Early intervention is the best means possible to ensure that you get paid before somebody else does whilst educating the debtor that if they wish to continue doing business with you then unless they abide by your terms and conditions they will need to go elsewhere. Although many people are honest debt loads increase substantially during periods of muted economic activity and therefore it needs to be watched closely. No one who is owed money should feel shy about approaching anyone who has gone beyond your normal credit terms. After all you are not a bank or a finance provider and shouldn’t be treated as one.
Debt Recovery - The Essential Guide to Debt Recovery - Part 4
Date: April 18, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Tax Law - The Reach of Legal Professional Privilege
Date: April 11, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary), Tony Anamourlis B.A., LL.B., MTaxLaw, GradDipLegPrac, SJD Candidate (La Trobe); ATIA
These propositions make it clear that any document being prepared with a view in order to obtain legal advice or to aid in the conduct of litigation even if it is only an aide-memoire has privilege attached to it from the time of creation.
Tax Law - Fringe Benefit Tax (FBT) - Exemptions
Date: March 28, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Fringe Benefits Tax is not normally an area which is referred to tax lawyers except where there has been fringe benefits tax non-compliance. Section 67 of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) provides the Tax Office with broad anti-avoidance powers which are similar to those that operate under Part IVA of the ITAA 1936 for income tax purposes.
Tax Law - Fringe Benefits Tax (FBT) - Exempt Motor Vehicles
Date: March 28, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Tax Law - Fringe Benefits Tax (FBT) - Considerations for Motor Vehicle FBT
Date: March 28, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Taxpayers need to know the type of analysis carried out by the ATO where car fringe benefits are involved. In order to address this properly the following matters need to be considered...
Tax Law - Anti-Avoidance Rules - Income Tax, GST, FBT
Date: March 28, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
There are a number of anti-avoidance provisions in the Tax Acts, their purpose being to nullify schemes or arrangements which are damaging the revenue. Whenever any such schemes or scams are identified by the Tax Office they not only look at their legal advisers but at all promoters, professionals and participants.
Tax Law - Income Tax - Part IVA ITAA 1936 - General Anti-Avoidance Rules
Date: March 28, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Part IVA is extremely dangerous as it has far reaching consequences and could potentially cover anything or everything done by the taxpayer(s) or their advisers. It was devised to address arrangements devised for the sole or dominant purpose of obtaining a tax benefit. Although a number of commentators construe this differently we consider “dominant” to mean “principal” but this is subject to some exceptions. Part IVA is provision of last resort and only applies where the taxpayer’s claim is otherwise allowable.
Tax Law - Objections
Date: March 27, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Normally where a taxpayer does not agree with an assessment, determination, notice, position paper or decision they may object, but this is not always available e.g. as in the case of GIC. A person’s right to lodge an objection is to be found in Part IVC of the Taxation Administration Act 1953(TAA53). Basically, an objection should focus on the subject matter of concern to the ATO disputing that part of it relating to the exercise of the Commissioner’s discretion.
Criminal Law - Apprehended Violence Orders - Court and Penalties
Date: March 10, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The vast majority of the AVOs and PVOs are settled after negotiations and the application can either be withdrawn and dismissed, or an undertaking made not to embark on any form of specified behaviour without admissions, or with an order being made with the consent of both parties with no admissions as to the nature of the facts alleged in the application for an order.
Taxation Law - Resident or Non-Resident for Taxation Purposes
Date: March 07, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary), Scott Gray LPAB, Grad. Dip. Legal Practice
Australian residents must declare all ordinary and statutory income no matter where in the world it is derived while non residents are only assessed on Australian sourced income.
Taxation Law - South African Voluntary Disclosure Program - Part 1
Date: February 22, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
On 17 February 2011 the South African Minister for Finance indicated that legislation would be introduced to allow a Voluntary Disclosure Program (VDP) covering the period November 2010 to October 2011. As with all voluntary disclosure programs the aim is to encourage applicants to disclose their tax non-compliance and be given the opportunity to become fully compliant taxpayers (Tax VDP) whilst at the same time regularising any contraventions of the Exchange Control Regulations 1961 (Excon VDP).
Taxation Law - South African Voluntary Disclosure Program - Part 2
Date: February 22, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The South African authorities have produced a guide to assist applicants. As you have seen from the previous article the word applicant is to be construed very widely and includes all classes of entities to be found in South Africa. It catches all taxes of whatever type and catches all types of breaches of the South African Exchange Controls in some cases catching advisers.
Taxation Law - South African Voluntary Disclosure Program - Part 3
Date: February 21, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Any entity recognized under South African law may apply to Finserv (VDP Division) for relief under the current Excon VDP for contraventions of the regulations prior to 28 February 2010 including South African residents who illegally took funds offshore which they either hold on a direct or indirect basis in any of a number of structures. By doing so successful applicants may regularise their exchange control affairs with respect to all unauthorized foreign assets disclosed in their application with no further action being taken against them.
Taxation Law - Onshore and Offshore Voluntary Disclosure - Going it Alone - Traps and Pitfalls
Date: February 11, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
LAC Lawyers is one of the leaders in onshore and offshore voluntary disclosure. Currently initiatives have been announced in both South Africa and the USA offering reduced penalties and interest where a person comes forward for specified periods including the full extent of their tax non-compliance. In many cases taxpayers are prompted to prepare their own voluntary disclosure in order to save on professional fees.
Taxation Law - Cash Sales - New Benchmarks
Date: February 09, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The ATO is becoming more and more concerned about the level of tax non-compliance in the cash economy and for this reason they have focused on cash sales and developed new benchmarks. This is particularly a problem with small business as major enterprises dealing with cash such as retailers, have proper systems in place to ensure monies received are properly dealt with and the correct amount of tax in all but a few cases is properly returned to the revenue.
Taxation Law - Taxpayers Seeking Advice - Complex Arrangements - Contract
Date: February 04, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In the Weekend Financial Review for 22nd and 23rd January 2011 there appeared an article headed “Taxpayers face advice quandary”. The article was written by Katie Walsh and she opines “taxpayers with complex arrangements can be forced to seek legal advice following a recent Administrative Appeals Tribunal (AAT) ruling that has left even tax professionals unsure as to what circumstances would warrant calling the lawyers.
Taxation Law - Division 7A
Date: February 02, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Taxation Law - Tax Havens, Operation Wickenby and the role of Professional Advisors
Date: February 01, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Even as the Offshore Voluntary Disclosure Initiative (OVDI) had been announced on 30 November 2009 the ATO continued to step up its efforts to combat tax havens. On 14 April 2010 the Tax Office announced that it had requested information from a number of banks which it would use to identify Australian taxpayers who have not disclosed offshore income or over-claimed deductions involving international transactions.
Taxation Law - Tax Havens, Operation Wickenby and Money Laundering
Date: February 01, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The Tax Office was never naïve enough to believe that just because they offered the offshore voluntary disclosure initiative (OVDI) that everybody who is tax non-compliant would come forward cleaning up the tax system for ever. What they wanted to do was to offer concessional treatment to those who were sensible enough to come forward whilst at the same time making the micro adjustments to the system allowing them to put in place initiatives so that they could better identify those who wished to remain anonymous to better deal with them in future through their compliance activities and increased penalties and interest including the ability to refer them for criminal prosecution.
Taxation Law - The Year That was 2010 - Tax Prosecutions in the June Quarter
Date: January 31, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
More than 360 people were convicted for tax and superannuation offences during this quarter. The Commissioner indicated convictions can range from failing to lodge tax returns to serious conduct like identity and refund fraud and defrauding the Commonwealth. He said that the Tax Office extensively cross-references information reported in tax returns with information provided by third parties to identified errors or discrepancies and last year they matched over 500,000 transactions.
Taxation Law - The Year That was 2010 - Tax Prosecutions in the September Quarter
Date: January 31, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Seventeen offences resulted in custodial terms ranging from 8 months to 7 years during this quarter. The Tax Office is trying to demonstrate that where taxpayers cheat the tax system the risk is not worth it.
Taxation Law - The Year That was 2010 - Operation Wickenby, Tax Evasion and Tax Fraud
Date: January 28, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
2010 was a very interesting year because it heralded a hardening of the approach taken by the ATO towards the collection of revenue on a world-wide basis. It might be remembered that with the onset of the GFC many of the initiatives that had been put in place by the ATO and other associated governmental agencies were sympathetically implemented.
Taxation Law - The Year That was 2010 - A harsher tax compliance regime
Date: January 28, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
the taxation system is now committed to a complete about-face, its primary purpose being to detect and collect revenue from all taxpayers who have either not declared or over-claimed deductions. Do not forget the obligation is imposed firmly on the taxpayer and although they may use a professional accountant to prepare their returns irrespective of the type of entity involved liability firmly rests with the taxpayer although professionals have now been placed directly under the spotlight including promoters.
Taxation Law - The Year That was 2010 - Detection and Prosecution of Tax Offences
Date: January 28, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The Commissioner indicated that these prosecutions ranged from offences such as failing to lodge to serious fraud including GST refund fraud. He pointed out that those who have been prosecuted now have to live with a criminal conviction against their name which is not worth it. He pointed out that the ATO has a range of ways to detect people who seek to avoid their taxation and superannuation responsibilities by not lodging returns through tax evasion or criminal fraud.
Insurance Law - Queensland Flood Claims - Insurers Response
Date: January 25, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
On Friday 21 January 2011 an article appeared in the Sydney Morning Herald written by Eric Johnstone, Kirsty Needham and Josephine Tovey to which we refer you. The article is headed “Insurers say no to Brisbane” and we quote as follows
Taxation Law - Garnishees - Do You Owe The Commissioner Money?
Date: January 25, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The Commissioner has an armory of tools at his disposal to collect unpaid monies. In many cases he may sue for it or alternatively he can raise a notice under section 260-5 of schedule 1 of the Taxation Administration Act 1997 (TAA97) requiring an employer to pay money to the Commissioner of Taxation on behalf of the debtor named taxpayer.
Insurance Law - Queensland, New South Wales and Victorian Flood Claims - Part 1
Date: January 21, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
During the course of the current storm disaster catastrophic damage has been experienced in all of the eastern states of Australia. Interestingly we have all heard of estimates of $500M, $1B, $5B and now $20B from the ANZ’s economists. In other words the rebuilding costs for floods will be substantial. As the Queensland Premier says, the damage bill will be noteworthy and that 28,000 homes will need to be rebuilt at a cost of approximately $8B out of a total rebuilding cost of $20B.
Insurance Law - Queensland, New South Wales and Victorian Flood Claims - Part 2
Date: January 21, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In all such cases where there has been catastrophic water damage through the incident of storm and/or flood it is obvious that the full benefits of an insurance policy are more fully available where the cause of the damage is storm. That is, even where an insured does not have the benefit of flood cover and they can rely upon their policy of insurance for storm cover they are far better off irrespective of the type of building damaged without extending the policy.
Taxation Law - Money Laundering, Terrorism Financing and Tax Evasion
Date: January 13, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Money laundering is the process of attempting to legitimatise funds that are derived from any underlying activity that is illegal. Money laundering constitutes a separate criminal activity in itself in Australia and in an ever increasing number of jurisdictions throughout the world.
Taxation Law - Personal Services Business Structures
Date: January 13, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary), Scott Gray LPAB, Grad. Dip. Legal Practice
When an individual has derived Personal Services Income (PSI) the income will be taxed at marginal rates unless the individual is deemed to be carrying on a Personal Services Business (PSB). There are four tests to determine whether a PSB exists
Insurance Law - New South Wales and Queensland Emergency Flood Claims
Date: January 06, 2011
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Recently Eastern Australia has been swept by massive storms which have caused extensive storm and/or flood damage to both domestic and business establishments. The problem when it comes to flood damge is that many insureds fail to understand what their rights are and that under many policies flood damage is either not covered or only nominally.
Taxation Law - International Taxation - Offshore Banks
Date: November 23, 2010
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
2010 has proved to be an interesting year for the taxation team at LAC Lawyers as we have experienced significant growth in our taxation practice.
Preservation of Wealth – Trusts and Tax Planning
Date: October 15, 2010
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Trusts are a useful and effective tool to protect assets and minimise exposure to tax.
Taxation Law - Tax Fraud
Date: September 14, 2010
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Butterworths Australian Legal Dictionary defines fraud as "an intentional dishonest act or omission done with the intention of deceiving". Obtaining a benefit by deception is to obtain an advantage or a profit or a gain by deceit. LAC Lawyer's Taxation team offer expertise in all aspects of Business & Commercial Law. Call LAC Lawyers today on 1300 799 888.
Taxation Law - Voluntary Disclosure (OVDI) - Named or Un-Named (2)
Date: August 06, 2010
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
When the overseas voluntary disclosure or initiative was originally announced and the forms which were available on the ATO website were produced they asked for more comprehensive material than those produced in April and following.
Taxation Law - Voluntary Disclosure (OVDI) - Named or Un-Named (1)
Date: August 06, 2010
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Over the last few months but more recently we have been preparing a lot of OVDI applications for submission to the ATO. What strikes us as odd is that quite a number of taxpayers have consulted professionals other than tax lawyers.
Taxation Law - Offshore Voluntary Disclosure Initiative (OVDI) - A Question of Choice
Date: May 04, 2010
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary), Tony Anamourlis B.A., LL.B., MTaxLaw, GradDipLegPrac, SJD Candidate (La Trobe); ATIA
There is now a choice offered to taxpayers who make a voluntary disclosure prior to the 30th of June 2010. The Commissioner states in his Offshore Voluntary Disclosure Initiative...
Taxation Law - Offshore Voluntary Disclosure Initiative (OVDI) - The Current Status of the ATO Concerning Tax Evasion and Tax Avoidance
Date: May 04, 2010
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary), Tony Anamourlis B.A., LL.B., MTaxLaw, GradDipLegPrac, SJD Candidate (La Trobe); ATIA
From a government perspective, there is some concern that proceeds of crime have become associated with fraud, tax evasion and other criminal activity. For example, in 2005-06, the ATO’s Serious Non-Compliance Department achieved the following...
Taxation Law - Offshore Voluntary Disclosure Initiative (OVDI)
Date: April 27, 2010
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary), Tony Anamourlis B.A., LL.B., MTaxLaw, GradDipLegPrac, SJD Candidate (La Trobe); ATIA
In recent months and especially with Project Wickenby there has been increasing attention in the press to the issue of tax evasion especially in relation to overseas transactions which are located in tax havens. In this respect many taxpayers may be under the belief that if there is offshore income there is little need to disclose it to the tax authorities as there is little possibility that the Tax office will be able to determine the nature of it.
Taxation Law - CGT and Trust Cloning Exception
Date: June 15, 2009
Author(s): LAC Lawyers, Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
In 1990, Section 160M(1a) ITAA 97 was enacted to ensure that mere change of legal ownership in an asset does not constitute a change of ownership of the asset for the purpose of Part IIIA of the ITAA 97. Consequently neither the transfer of an asset nor the change of the Trustee of a trust would be deemed to be a disposal under Part IIIA ITAA and therefore not subject to the payment of CGT.
Taxation Law - CGT and Trust Cloning
Date: June 10, 2009
Author(s): LAC Lawyers, Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
A Discretionary trust is one of the most sought after trust structures in view of the enormous benefit that follows from the establishment of such a trust. The Discretionary Trust structure creates a framework for family assets to be passed from one generation to another without losing control over key assets, allows for the protection of assets from creditors, creates an effective tax structure and in particular allows access to Capital Gains Tax (CGT) concessions.
Taxation Law - Liquidation of Entities - Tax Consequences
Date: June 10, 2009
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
For a number of years now both ASIC and the ATO have been clamping down on arrangements which lead to the liquidation of entities, particularly companies which continue to avoid their liabilities including the payment of tax.
Criminal Law - Apprehended Violence Orders - Offences
Date: May 21, 2009
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Given the rise in awareness of the cost and impact of violence in the community, with a focus on domestic violence, the NSW Parliament has responded with legislation designed specifically to address this area. The aim of the current legislation (Crimes(Domestic and Personal Violence) Act 2007 No. 80 (the Act)) is...
Taxation Law - Consequences of Directors Penalty Notices
Date: April 16, 2009
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Where there has been a failure to abide by Section 222AOE by the end of the 14 day period the ATO is at liberty to recover the amount of outstanding tax from each and every director on a joint and several basis.
Taxation Law - Directors' Liability for Tax
Date: April 08, 2009
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Over recent years the Tax Office is exercising less forbearance with respect to the recovery of outstanding tax irrespective of the category involved. Normally tax is not paid by a taxpayer where the entity involved is under financial pressure which affects its overall profitability.
Taxation Law - Taxation Disputes - Resolution
Date: March 09, 2009
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Taxation disputes arise for either legitimate or illegitimate reasons.
Taxation Law - Taxation Disputes - Concealment
Date: March 08, 2009
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
may feel confronted and try to characterise or manufacture a situation which will support circumstances which will disguise their tax non-compliance were this not done. They conspire to contrive a situation where their affairs including their financial accounts will pass muster on cursory examination.
Criminal Law - Centrelink Offences
Date: January 23, 2009
Author(s): LAC Lawyers, Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Social security fraud is a general malaise affecting the ability of the Commonwealth Government to provide benefits to the needy. Centrelink fraud is committed when a person knowingly gives false and misleading information to obtain access to a benefit and to obtain a payment that they should not be getting; or misrepresents their circumstances; or fails to inform Centrelink that they have no further entitlement to benefits.
Taxation Law - Wickenby Legal Professional Privilege
Date: January 22, 2009
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Ever since 2004 we have consistently heard of Project and Operation Wickenby. The first is headed up by the ATO and the second by the Australian Crime Commission (ACC). The first is looking at the civil consequences of tax avoidance or tax evasion or tax fraud or money laundering and the second from a criminal law perspective. Project Wickenby comprises a multi-agency taskforce focused on the activities of Strachans SA of Geneva, a company providing specialist company and trust administration services together with international tax and financial consultancy.
Taxation Law - Taxation Disputes - Default Assessments
Date: January 20, 2009
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Taxation disputes can arise for many reasons. Often they occur where no return has been furnished or the Commissioner is not satisfied with the return furnished or has reason to believe the person who has not furnished the return has derived taxable income. In these circumstances he is entitled to make an assessment under section 167 of the amount on which, in his judgement income tax has to be paid for the purposes of section 166 of the Act.
Taxation Law - Enforcement
Date: January 14, 2009
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
A lot has been said over recent years about the ATO’s commitment to various initiatives it has put in place. It should be remembered that for high profile risks the ATO established in July 2003 the Serious Non-Compliance (SNC) Business Line which deals with people who set out to deliberately evade their taxation obligations and/or fraudulently abuse the system to obtain an improper benefit.
De Facto Relationships, A New South Wales and Victorian Perspective
Date: December 31, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Originally de facto relationships in NSW were governed by the De Facto Relationships Act which was replaced in June 1999. The term “de facto relationship” has been significantly widened to cover all relationships between two adults over the age of 18 years who live together, are not married and who are not related to each other. This definition now covers gay couples providing them with a level of protection which had not existed previously.
Home Warranty Insurance
Date: December 31, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
There is an approved list of insurers who sell home warranty insurance for residential building work in NSW under the Home Building Act 1989. Essentially home warranty insurance is required for residential building work including the supply of a kit home where the value of the work exceeds $12,000. Previously minimum cover was stipulated at $200,000 but from 1st March 2007 this was increased to $300,000.
Taxation Law - Taxation Disputes
Date: December 03, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Over recent years there has been an alarming increase in taxation disputes involving all types of tax non-compliance. Where tax non-compliance is involved it can be managed as follows:
Taxation Law - Some Traps and Pitfalls with Taxation Interviews
Date: October 23, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Taxation Law - Don't Attempt to Rewrite History
Date: October 22, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
One of the interesting things about being drawn into a taxation dispute is that clients will often adopt the mantra – deny, deny, deny or destroy, destroy, destroy. Essentially they are denying facts, the genesis of documents, or information which they say they does not exist because they have destroyed or secreted them away.
Taxation Law - A Lesson from Vanuatu
Date: October 22, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Taxation Law - Money Laundering
Date: August 14, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Money laundering was intended to catch large scale drug dealers, operators of crime syndicates and persons associated with these enterprises. Conveniently for the authorities it also has relevance to the area of tax crime including identity theft. Fraud or tax evasion has never had the reach the authorities want. Under the Crimes Act 1914 fraud was punishable for up to 20 years but under the Commonwealth Criminal Code 1995 it was dropped to 10 years as in the case of deception offences.
Taxation Law - Hoges v The Taxman - Taxation Considerations
Date: August 05, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Taxation Law - Business Records and Substantiation
Date: July 27, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Generally taxes are all about income, deductions and substantiation. One of the areas where taxpayers are substantially at risk is record keeping and substantiation for claims made for deductions.
Taxation Law - Get the Right Advice
Date: July 27, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Frank Egan is the Managing Director of LAC Lawyers and has over 29 years experience as a lawyer. He specialises in the field of taxation and is one of Australia’s few full time taxation lawyers. He advises and represents clients on both state and federal taxation matters including arrangements with international taxation consequences.
Taxation Law - Energy Grants and Fuel Tax Credits
Date: July 02, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Most members of the public are not aware that heavy haulage or trucking or logistics operators may be entitled to either an energy grant or a fuel tax credit with respect to their trucking operations. There are a number of selected eligibility criteria which apply in this area before a claim will be entertained and therefore paid.
Taxation Law - Some Aspects of Voluntary Disclosure Not Readily Understood
Date: June 29, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
There are any number of letters doing the rounds of taxpayers reminding them of their taxation obligations. One area on which the Tax Office is focusing on is the cash economy and they are focusing on identifying businesses who fail to accurately record and report all their business transactions.
Taxation Law - Tax Havens & Criminality
Date: June 23, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Although every revenue authority around the world is trying to corral, limit and in some cases neuter the influence of tax havens they will continue to prosper. High net worth individuals are not averse to taking risks and often assess their situation with respect to the ability of the authorities to detect them including any offshore activities.
Taxation Law - Overseas Dealings
Date: March 13, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Often clients want to use their accountant to lend legitimacy to their taxation affairs and to deny any knowledge of overseas dealings, interests or assets as they say their adviser filled out their return and answered questions about overseas interests, assets and holdings as "No". From that point on they have lost credibility.
Taxation Law - Promoters
Date: March 13, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Although promoters are the Tax Office's principal targets they are after any taxpayer who has used offshore bank accounts, credit and debit cards, offshore financial products and/or structures to conceal income or assets from them.
Taxation Law - Tax Havens
Date: March 13, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Tax havens enable tax evaders to conceal their assets and income offshore from scrutiny. They are readily identifiable from their lack of transparency and effective information exchange. Secrecy means that tax administrations operate on the basis that the taxpayer proves the bona fides of any arrangement/ scheme.
Taxation Law - Offshore Funds and Structures
Date: February 20, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Often bogus/fabricated documents are relied upon by taxpayers to defend overseas interests/structures and locally claimed deductions. Why would anyone in their right mind enter into a multi million dollar contract for overseas IT consultancy, for example, in the Cook Islands, a tax haven, given that they are not known as a supplier of IT consultancy services like India.
Taxation Law - Have You Received A Letter From The Australian Tax Office
Date: February 18, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The Australian Taxation office (Tax Office) is increasing its focus on Australian residents who may have undisclosed offshore income or over claimed deductions involving international transactions.
Taxation Law - Offshore Non-Complying Arrangements
Date: February 12, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Taxation Law - Tax Havens and Non-Compliance
Date: February 11, 2008
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Over recent years the Tax office has tightened up considerably on overseas arrangements and schemes which have been used to either secrete assets or hide income. Normally the success of these arrangements relies upon concealment using any of a number of structures to prevent detection including the use of tax havens.
Insurance Law and Business Interruption Insurance
Date: December 05, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
People in business insure their premises, contents and stock against the material damage risks of fire, explosion and other perils, but have they given the same thought to the other problems which would arise following any of these events, the problems which manifest themselves when the fire engines have driven away.
Taxation Law - Arrangements to Avoid Australian Tax - Could This Be You?
Date: November 18, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Whenever a taxpayer is involved in aggressive tax planning they need to ensure that they stay on the right side of the law. Essentially there is a great difference between tax avoidance and tax evasion. The first is lawful and the latter is unlawful with the consequence that can lead to criminal prosecution and a custodial sentence.
Taxation Law - Taxation Settlements
Date: September 11, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Taxation law and practice is a highly complex area of the law. For any number of reasons individual or corporate taxpayers may find themselves in dispute with the ATO. In order to provide some certainty as to how a taxation dispute may be dealt with the ATO follows a Code of Settlement Practice.
Taxation Law - Some Criminal Consequences of Tax Evasion
Date: September 09, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Although the majority of taxpayers abide by their obligations there are a number who don't. A range of penalties and sanctions which can be brought to bear including civil, administrative and criminal. Many people think if you don't pay your tax and ignore the problem it will go away, which couldn't be further from the truth.
Taxation Law - Major ATO Targets For 2007/2008 Tax Year
Date: September 04, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The Commissioner of Taxation has recently released his 2007/08 Compliance Programme. As with every compliance programme the emphasis shifts and this year the ATO's goals are about "being fair and professional; applying the rule of law; supporting taxpayers who want to do the right thing; and being consulted, collaborative and willing to co-design."
Taxation Law - Voluntary Disclosure
Date: August 15, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Currently the Glen Wheatley case is colouring everyone's perception of the Australian tax landscape. Obviously the decision is not understood by the press which has influenced many taxpayers' perceptions on the desirability of making a voluntary disclosure.
Taxation Law - The Glen Wheatley Case - The Value Of Coming Forward - Was It An Unprompted Voluntary Disclosure?
Date: July 31, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
For some time now the papers have been full of the Glen Wheatley case, and the following types of comments have been made by a number of commentators.
Insurance Law - Storm Claims and the Newcastle/Hunter Region
Date: June 21, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Although underinsurance or the lack of insurance is a major problem for the community in both good and bad times its importance is critical in times of natural disasters including storms and cyclones. Every time there is a major storm either general or localised flooding is a problem.
Taxation Law - Negotiation
Date: May 22, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Negotiation is an art not a science. Often clients forget this and do not really understand the process. Butterworths Australian Legal Dictionary defines negotiation as "generally, mutual discussion and arrangements of the terms of a transaction or agreement."
Owner Builders and Home Warranty Insurance - NSW
Date: May 03, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
We are often approached by people who have decided to build their own home as owner builders rather than retain a licensed builder. There is a common misconception that not only will the house be cheaper but owner builders do not bear the same responsibilities with respect to home warranty insurance as licensed builders.
Taxation Law - Goods and Services Tax
Date: May 01, 2007
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
As everyone understands there are a number of Commonwealth Government taxes. The major ones are CGT, FBT, ICT, GST, LCT and PAYG (earn/withholding). At this stage this paper will only deal with GST legislation. The main piece of GST legislation is a new tax system (Goods and Services Tax Act 1999) which came into operation on 1 July 2000 and is payable only on supplies and importations made on or after that date.
Essential Will Information
Date: November 08, 2006
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Many people today make their own wills and this approach is fraught with danger. A will is a written declaration that sets out how a person wants their assets to be distributed to their beneficiaries following death.
Criminal Law - How Serious Are AVOs (New South Wales)
Date: October 12, 2006
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
There is a strong desire on the part of the legislature to reduce the incidence of, and provide protection to, the victims of domestic violence. Apprehended violence orders and bail are the main vehicles chosen to provide this protection. These provisions are fundamentally in aid of the prosecution.
Taxation Law - Tax Evasion - How Do The Criminal Courts Treat Tax Evaders
Date: October 11, 2006
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The most serious case in this area was handed down by the New South Wales Court of Criminal Appeal in R. v Ida Ronen, Nitzen Roden and Izhar Ronen on the 19th April 2006. The message which the courts delivered in this case is that they will treat all cases of serial tax evasion as extremely serious leading to long periods of imprisonment irrespective of the taxpayer’s individual circumstances even where taxpayers have paid their penalty tax in full.
Insurance Law - The different types of Insurance Claims and why they are sometimes denied
Date: October 09, 2006
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Claims are often denied by insurers for a variety of reasons. They may have been denied for anything from non-disclosure of material fact through to fraud or over-capitalisation of loss. Interestingly, there has been a fundamental change over the last ten years in the approach taken by insurers with the denial of claims.
Taxation Law - The old adage “you get what you pay for” is as true today as it has ever been.
Date: September 11, 2006
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Currently the taxation landscape in Australia is in a state of great flux. Although legislation is constantly being updated a comprehensive review of this whole area has not been carried out. The whole area is unnecessarily complex and both the Australian Taxation Office and the courts have been left to do the best they can to provide meaningful interpretations of the law in this area.
Does The Duty of Utmost Good Faith Apply to Claims
Date: May 04, 2006
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Originally the duty of utmost good faith was a common law concept which applied directly to contracts of insurance.
Claim Brokers
Date: May 02, 2006
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Many corporate, commercial and business insureds shrug off the idea that they won’t get a fair deal from their insurer because of their buying power and they have an Insurance & Risk Manager, a Company Secretary/Finance Director and/or an Insurance Broker who are there to ensure this can’t and won’t happen. Think again.
Why Insurance Claims Are Not Paid
Date: May 02, 2006
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
Employment Law – Unfair Dismissal and the Workplace Relations System
Date: March 26, 2006
Author(s): Frank Egan B.A., LL.B., A.C.L.A., F.T.I.A. (Notary)
The Federal Government has announced widespread changes to the Australian workplace relations system, by relying upon one of the heads of power under the Australian Constitution, namely the Corporations Power.